Last week, Constellation announced they will acquire Calpine for $16.4bn in a deal that will create the largest power generating company in America. The new company will serve a commercial electricity demand exceeding 200 million megawatt hours (MWh) with over 840 million dekatherms (Dth) of retail natural gas consumption. The combined company reinforces Constellation’s position as the largest clean energy producer with the lowest carbon emissions intensity in the U.S. Constellation is already the top clean energy producer in the U.S., providing 10% of the nation’s emissions-free energy. This transaction is all happening with the backdrop of a projected surge in electricity demand driven by increased electrification, rapid growth in artificial intelligence technology, and the construction of new state-of-the-art datacenters. Calpine brings 27.7 gigawatts (GW) from 79 power plants stretching across some of highest growth regions of the country to the deal. Together, Constellation and Calpine will have nearly 60-GW of capacity from zero- and low-emission sources, including nuclear, natural gas, geothermal, hydro, wind, solar, cogeneration and battery storage. After accounting for cash that is expected to be generated by Calpine between signing and the expected closing date, as well as the value of tax attributes at Calpine, the net purchase price is $26.6bn. Powering good!
Constellation’s news release: https://lnkd.in/dvPAZEzn
Constellation’s January 10, 2025, Calpine acquisition investor presentation: file:///C:/Users/KK8997/Downloads/Calpine%20Acquisition%20Announcement%20vF%20(1).pdf
Kent Knutson
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